Nigeria Leads in Petrol Price Increases Amid Middle East Turmoil

According to a market analysis utilizing Global Petrol Prices data, Nigeria has noted the most pronounced increase in petrol prices worldwide, spurred by the intensification of the Middle East conflict.

The analysis reveals that between February 23 and March 16, petrol prices in Nigeria rose by 39.5%, marking the highest global increase during this timeframe. In comparison, Laos experienced a 32.9% hike, while Australia and Vietnam saw increases of 31.8%. The United States recorded a 23.6% rise.

In Europe and other parts of the world, Spain has documented an 18.7% escalation, followed by Canada at 17.2%, Germany at 14.9%, Egypt at 14.3%, and France at 12.3%. Other notable increases include China with a 10% rise and Ethiopia at 7.9%. The United Kingdom and the United Arab Emirates reported similar increases of 6.5% and 6.4%, while Liberia and Hong Kong recorded smaller increases at 4.9% and 4.7%, respectively. Croatia and Qatar saw rises of 2.7%, South Africa 1%, and Mexico just 0.5%.

This price surge correlates directly with the current Middle East conflict, which has majorly disrupted the global oil supply and escalated crude prices to a four-year high, resulting in heightened fuel costs across the globe.

In Nigeria, petrol prices have escalated to as much as N1,200 per litre, defying expectations that increased local refining capability would stabilize the market. This spike has led to immediate economic repercussions, including reports of transport fares doubling on several key routes.

In statements made earlier in March, the Dangote Refinery noted its vulnerability to global market fluctuations as crude oil is priced at international benchmarks. Consequently, on March 13, the refinery adjusted its ex-gantry petrol price to N1,175 per litre.

Concurrently, Nigeria's oil production is on the decline. Figures from the Organization of the Petroleum Exporting Countries indicate that the nation’s crude output fell to 1.31 million barrels per day in February.

The compounded effects of soaring global oil prices alongside diminishing domestic production continue to exert pressure on fuel prices and the overall economy.